Collective-Bargaining exam

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Collective Bargaining : 

Human Resource Management Husnain Khalid AD 511764 Submitted to : Mr. Faisal Imran Allama Iqbal Open University Collective Bargaining

Collective Bargaining : 

Collective Bargaining

Meaning : 

Collective Bargaining is negotiation between an employer or group of employers and a group of work people to reach an agreement on working conditions. Representatives of employers and employees negotiate, administer and enforce an agreement. Husnain Khalid AD511764 AIOU Meaning

Critical Success Factors : 

Interaction in good faith While safeguarding the interests of employees, Union cannot ignore the survival and success of organization. Management must protect the rights of trade unions Bargaining agent must truly represent majority of workers. Management must not exploit worker’s disunity Both Management and Union must be vigilant about politicians who normally exploit Husnain Khalid AD511764 AIOU Critical Success Factors

Definition : 

Negotiation about working conditions and terms of employment between an employer, a group of employers, or one or more employers organizations on the one hand and one or more representative workers organizations on the other with a view to reaching agreement – Husnain Khalid AD511764 AIOU Definition

Meaning : 

Group process Involves negotiations Bipartite exercise involving representatives of union of employees and employers Objective is to reach an agreement Purpose is to improve working conditions of employees viz. wages, welfare, security, freedom, etc., Not merely an economic process but socio-economic process (mutual respect to views, values, aspirations, etc) Husnain Khalid AD511764 AIOU Meaning

Scope of Collective Bargaining : 

Wages fixation, increments and bonus payment Hours of work and overtime Terms and conditions of work, safety, welfare and health care Grievance procedure Labour productivity, labour standard and modernization Union-Management relations including workers participation Husnain Khalid AD511764 AIOU Scope of Collective Bargaining

Types of Collective Bargaining : 

Plant level Agreement settled between management and representatives of workers union Industry level Number of mfg. units within an industry where workers face similar problems Union of Unions (Industry Union) National level Common problems cutting across industries, regions are discussed Eg. Agreement between labour and management to “Rationalize Work Practices” Husnain Khalid AD511764 AIOU Types of Collective Bargaining

Process of Collective Bargaining : 

Phase I : Charter of demands by Bargaining Agent Phase II : Preparation for Negotiation Phase III : Bargaining Phase IV : Collective Agreement Phase V : Contract Administration Husnain Khalid AD511764 AIOU Process of Collective Bargaining

Phase I : 

Steps Registration of Union Recognition of Union Recognition of Bargaining Agent (Union having majority membership) Charter of Demands Present it to management for agreement, for and on behalf of employees. Husnain Khalid AD511764 AIOU Phase I

Phase II : 

Preparation by Management Data Collection : Internal and External Policy Formulation : wage level , concessions they could allow, balancing between viability and labour costs, balancing between interests of share holders vs. labourers, constraints on pricing vs. competition Management Strategy : Prioritization of demand; stand against Union (tough or accommodative), etc. Preparation by Union : collect data, formulate policy (strike or not; management’s capacity to pay, public support, etc.,), formulate strategy Husnain Khalid AD511764 AIOU Phase II

Phase III : 

Options available Total rejection Reject outright a few, and offer to consider some Temporary suspension of negotiation for the management to study the implication of demands and come prepared for re-start of negotiations While agreeing union’s demands, management put forth counter demands Husnain Khalid AD511764 AIOU Phase III

Phase III : 

Criteria for Bargaining Give and take attitude from both sides Keep communication channel open Capacity to read others “hidden agenda” (by negotiation or by collection of intelligence data) Identify “sticking point” (if offered less will lead to industrial strife) Husnain Khalid AD511764 AIOU Phase III

Phase III : 

Strategies for Bargaining (identified by Watton & Mckersie) Intra-organizational bargaining Management and Union prefix strategy Limits up to which they are prepared to go down on their own as well as others demands Attitudinal Structuring Ongoing relationship instead of ad hoc arrangement Involves trust and confidence; Work together as partners Husnain Khalid AD511764 AIOU Phase III

Phase III : 

Strategies for Bargaining (identified by Watton & Mckersie) Distributive Bargaining One Gain – Another Lose (eg. Wage rise for labourers is reduction in profit for management) Interactive Bargaining (Best Strategy) Win-Win situation Eg. Workers increase productivity and claim higher compensation; Management assist workers achieve their objective by taking supportive role. Husnain Khalid AD511764 AIOU Phase III

Phase III : 

Strategies for Bargaining (identified by Watton & Mckersie) Bargaining power of parties Management has upper limit; Union has sticking point; Two points are called “Anchors” Factors determining bargaining power Styles, objectives and motives of negotiators Persuasion and coercion skills and techniques Competition Husnain Khalid AD511764 AIOU Phase III

Phase IV : 

Writing down Collective Agreement Also known as “Labor Contract”, “Union Contract” or “Labor-Management Contract” Written statement of terms and provisions of the agreement Husnain Khalid AD511764 AIOU Phase IV

Phase V : 

Contract Administration Transparency Management has right to manage & involves fairness, equity, transparency of administration and free flow of information. Procedure for handling contractual disputes Spell out detailed procedure in implementation of provisions of contract Follow the spirit of agreement Husnain Khalid AD511764 AIOU Phase V

Criteria for making Collective Bargaining effective : 

Proper selection of negotiating team Consider Union as a Partner Understand views and interests of other party with open mind Adequate homework Sense of belongingness (on part of union) Strikes and Lockouts are to be the last resorts Husnain Khalid AD511764 AIOU Criteria for making Collective Bargaining effective

Policies : 

Collective Bargaining be considered as an educational process Collective Bargaining must be treated as a form of finding out an optimum solution to a given problem Both parties have equal power Have trust and confidence Leadership qualities Follow State laws Husnain Khalid AD511764 AIOU Policies

PRACTICAL STUDY : 

PRACTICAL STUDY Husnain Khalid AD511764 AIOU

Company ProfilePTCL is all set to redefine the established boundaries of the telecommunication market and is shifting the productivity frontier to new heights. Today, for millions of people, we demand instant access to new products and ideas. More importantly we want them for their better living standards with increased values in this ever-shrinking globe of ours. We are setting free the spirit of innovation.PTCL is going to be your first choice in the future as well, just as it has been over the past six decades. : 

Company ProfilePTCL is all set to redefine the established boundaries of the telecommunication market and is shifting the productivity frontier to new heights. Today, for millions of people, we demand instant access to new products and ideas. More importantly we want them for their better living standards with increased values in this ever-shrinking globe of ours. We are setting free the spirit of innovation.PTCL is going to be your first choice in the future as well, just as it has been over the past six decades. Husnain Khalid AD511764 AIOU

Business & Corporate Users: : 

For clear communication the first choice of business circles is PTCL telephone for local, nationwide and international calling. Today businesses can have 10-100 lines with modern day services to meet their needs. Now you get options like Caller-ID, call-forwarding, call-waiting, Call Barring, to name a few.  Nationwide Infrastructure: We have the largest Copper infrastructure spread over every city, town and village of Pakistan with over million installed lines. The network has over 0.5 million POTS ports with more than 250,000 Broadband ports in 13 major cities. Husnain Khalid AD511764 AIOU Business & Corporate Users:

Broadband Pakistan : 

PTCL Broadband is the largest and the fastest growing Broadband service  in Pakistan.  In less than two years of it launch, PTCL has acquired over 150,000 Broadband customers in over 150 cities and towns across Pakistan, leading the proliferation and awareness of Broadband services across Pakistan. With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where till a couple of years back there was very little awareness in the country about broadband & high speed internet services. PTCL made the broadband technology affordable by lowering the barriers to entry, by geographically bringing the service within the reach of a common user across Pakistan and by continuous improvements in customer care for the service. Broadband Pakistan Husnain Khalid AD511764 AIOU

Unique offers that makes PTCL’s Broadband unmatchable are special packages for the student segment, FREE modem and installation, FREE dial up service for its Broadband customers and FREE access to movies, music, classical Pakistani dramas, cricket matches, gaming, educational and religious content on PTCL’s entertainment portal ‘BUZZ’, (made exclusive only to PTCL Broadband subscribers). PTCL also offers multiple FREE personalized e-mail accounts exclusively to its broadband users. In addition, PTCL recently doubled its broadband speed for all its existing and new customers at the same price, making 1 MB as its minimum offered speed. Husnain Khalid AD511764 AIOU

IPTV Service (Smart TV) : 

Using its state of the art Broadband network, PTCL entered the media sector on 14th August 2008, by launching a digital interactive television service for the first time in Pakistan. Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the list of a few countries across the globe that offers this state of the art interactive TV service to its subscribers. Branded under ‘PTCL Smart Line’, the service includes Interactive Television, Broadband and voice telephony all at the same time on PTCL’s telephone line. Besides offering the highest digital quality TV picture, the most revolutionary section of this offering is the ability to ‘rewind’ and ‘pause’ live TV channels, the ability to block / unblock any TV channel for parental lock and the ability to search through video on demand content. Currently PTCL Smart TV offers its viewers over hundred live channels and over 350 local and international Movie titles ‘on Demand’. The service for now is available in four cities Karachi, Lahore and Rawalpindi Islamabad however is planned to be expanded to all the major cities and towns across Pakistan during the year 2009. IPTV Service (Smart TV) Husnain Khalid AD511764 AIOU

PRESENT SITUATION PRO COLLECTIVE BARGAINING IN PTCL : 

A rift has been created between Pakistan Telecommunication Company Limited (PTCL) union leaders after the government influenced several of them to abandon their anti-privatization protests.Sources told Daily Times on Wednesday that the PTCL management played a critical role in creating the rift after assuring several union leaders that they would be “taken care” of by the company. Sources said union leader Rana Tahir had told his colleagues that they must agree to PTCL’s privatization because the workers could not afford to resume their strike due to the economic factor. Union leaders such as Malik Maqbool was also said to be favouring Rana Tahir, but they had requested him not to publicly change his stand for the time being, sources added. Annoyed by the pro-privatization tendency among his colleagues, a union leader asked PTCL workers to resume their countrywide strike, sources said, adding that upset with the internal strife between union leaders, PTCL workers chanted slogans against them (union leaders) outside the PTCL headquarter. Workers also threatened to disrupt telecommunication services between cities regardless of the government-union talks. Meanwhile, union leaders accused the government of pressuring them to sign a statement saying they would not oppose PTCL’s privatization. Government representatives and PTCL union leaders started the latest meeting at 10:00am. Later, union leader Tanvir Shah said that union leaders meeting government representatives told their colleagues that their talks were unsuccessful. PRESENT SITUATION PRO COLLECTIVE BARGAINING IN PTCL Husnain Khalid AD511764 AIOU

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Husnain Khalid AD511764 AIOU SWOT analysis table for PTCL

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Husnain Khalid AD511764 AIOU

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